Analysis reveals that human capital and foreign direct investment boost economic growth in Indonesia, suggesting vital policy implications.
This study examines how crude oil price volatility, human capital, and foreign direct investment affect economic growth in Indonesia. Utilizing an autoregressive distributed lag (ARDL) model and annual time series data from 1986 to 2022, the results indicate that: (1) crude oil price volatility does not have a long-term effect on economic growth, (2) human capital positively impacts economic growth over the long run, (3) foreign direct investment contributes positively to economic growth, and (4) in the short term, crude oil price volatility, human capital, and foreign direct investment collectively influence economic growth.
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Ningtyas et al. (2025) studied this question.